9 September 2026
By Chris Beaumont, Partner and Head of Academies
The new academic year brings another round of changes for academy trusts to consider.
For many academies, one of the biggest issues is the 2026/27 support staff pay award and what it means for already tight budgets.
The agreed National Joint Council (NJC) pay award provides a 3.3% increase, effective from 1 April 2026, for staff covered by the NJC arrangements.
For academy trusts that uses NJC or Green Book arrangements for support staff, this means payroll costs need to be reviewed and budgets updated.
And it is not just about salaries. Trusts also need to consider pension and National Insurance costs, staffing changes, funding and upcoming DfE reporting deadlines.
What does the support staff pay award mean for academies?
Most academies, that we work with, follow the NJC pay structure for support staff, although trusts are able to set their own pay and conditions.
The 2026/27 NJC settlement is a 3.3% increase, backdated to 1 April 2026.
Finance teams should check that the award has been applied correctly and that any backdated pay is included in payroll and financial forecasts.
The important point is that a 3.3% increase in basic salary does not represent the full additional cost to the trust.
Higher salaries can also increase employer National Insurance, pension contributions, overtime, and other employment costs.
For larger trusts, even a relatively small percentage increase can have a significant impact when applied across a large support staff team.
Don’t forget the back pay
As the award is effective from 1 April 2026, trusts need to consider any arrears due to eligible employees in terms of back pay to the individuals.
Finance teams should check which staff are covered, their current pay points, any incremental progression, and relevant allowances. It is also important to make sure pension, and National Insurance costs have been factored into the forecast, and what should be accrued in the year-end financial statements.
A useful check is to compare the updated budget with the actual payroll position. If there is a difference, understand why it has arisen rather than simply adjusting the forecast to make the numbers balance.
Budget Forecast Return deadline
One of the key dates for academy trusts this autumn is the 2026 Budget Forecast Return (BFR).
The deadline for submitting the BFR is 24 September 2026.
The BFR includes actual and forecast financial information for the next three years. This makes it particularly important that staffing assumptions are realistic.
The BFR should not simply be last year’s budget rolled forward with a percentage increase.
Trusts should consider their actual staffing structure, planned recruitment, vacancies, pay awards and expected changes in pupil numbers.
Teacher pay also needs to be considered. The 2026/27 teacher pay award is 3.5% from 1 September 2026. Whilst part of this is funded through the Schools Budget Support Grant (SBSG 26) some of this additional cost will also need to be absorbed by the Trusts.
As this grant is being paid in November but relates to the increase in teachers’ pay (effective 1 Sept 26) and support staff (effective 1 April 26) an apportionment exercise will need to be carried out. Based on calculations we’ve seen accruing 20% of the grant would seem reasonable.
Trusts will also need to consider the impact of the reduction from 28.6% to 17.6% in the Employers contribution to the Teachers’ pension scheme (TPS) with effect from 1 April 2027. Previous grants that were awarded to help with the increase in Teachers Pension Contributions are therefore also being unwound.
In theory this change in the TPS should be cost neutral for Trusts but given many trusts we work with found that when contributions increased the grant failed to keep pace with the increase the hope is that the reduction in funding will be less than the reduction in costs.
Look at the whole staffing picture
Pay awards are only part of the staffing budget.
Trusts should also review staff moving up pay points, TLRs, changes to contracts, agency and supply staff costs, maternity and sickness cover and any planned restructuring.
If vacancies have been difficult to fill, it may be tempting to assume that they will remain vacant throughout the year. However, that may not be a realistic long-term assumption.
The same applies to agency staff. If agency spending has increased, trusts should consider whether this is a temporary issue or something that needs to be built into future forecasts. Note the changes in the 2026 Academies Trust Handbook.
Good budgeting is about understanding what is likely to happen, rather than simply making the figures fit.
Other changes academies need to consider
The support staff pay award is not the only issue academy trusts need to have on their radar.
The Academy Trust Handbook 2026 comes into effect on 1 October 2026, bringing changes that trusts should understand.
There are changes around areas including executive pay and special severance payments, with DfE approval required for certain higher-value arrangements.
This is a good opportunity for trusts to review their internal approval processes and make sure finance, HR and governance teams understand the new requirements.
Trusts should also keep their latest funding position under review. The 2026/27 General Annual Grant allocations have now been issued, so budgets and forecasts should be based on the latest available information.
Pupil numbers, SEND pressures, high-needs funding and other income assumptions should also be reviewed regularly.
What should trustees be asking?
Trustees do not need to get involved in every payroll calculation, but they should understand the impact of pay awards on the trust’s overall financial position.
Useful questions include:
- Have all pay awards been included?
- What is the full cost of the support staff increase, including employer on-costs?
- Are staffing costs increasing faster than income?
- Which academies are forecasting a deficit?
- Are agency and supply costs under control?
- Are the staffing assumptions realistic for the next two or three years?
These questions help trustees move beyond simply reviewing the numbers and towards actively managing the trust’s financial position.
Key academy finance deadlines
With the new academic year underway, now is the time to make sure the key dates are in the finance calendar.
The 2026 Budget Forecast Return must be submitted by 24 September 2026, while the Academy Trust Handbook 2026 takes effect from 1 October 2026.
The financial statements to 31 August will need agreeing and submitting to the DfE by the 31 December.
Looking further ahead, the 2025/26 Academies Accounts Return is due by 26 January 2027.
Starting early on the year-end process can make a significant difference, particularly around payroll reconciliations, pension information, fixed assets, grant income, and related-party transactions.
The key message for academy trusts
The 2026/27 support staff pay award is another cost pressure at a time when many academy trusts are already working hard to balance their budgets.
The answer is not simply to add 3.3% to the staffing budget.
Trusts need to understand the full cost of employment, update their forecasts, and consider what the changes mean for the wider financial position.
The September BFR deadline provides a useful opportunity to step back and test whether the trust’s financial plan is realistic.
For academy leaders, finance teams and trustees, the priority is simple: understand what is changing, understand the cost and act early.
That means fewer surprises later in the year and better information when important financial decisions need to be made.
This article is intended as general guidance for academy trusts in England and is based on information available in September 2026. Trusts should always check the latest DfE guidance and their own funding arrangements before making decisions.